Analysis of Ansoff’s Matrix

Topics: Economics, WiMAX, Service Pages: 2 (614 words) Published: April 2, 2011
Analysis of Ansoff’s Matrix :
1. Market penetration (Present market/Present products):
Since Vodafone is still riding high on it’s current zoo zoo advertising campaign, it should capitalize on this and try to increase their presence by opting for further emphasis on their urban distribution network. As the impact of any promotional strategy does not last for more than a limited timeframe, it is imperative for Vodafone to make sure that they retain their

current popularity levels by pushing forward their advertising campaign in a much more aggressive manner. In the case of
Mumbai, Vodafone has made it’s presence felt by opening
25000 distribution outlets and has hence captured the numero uno slot in this metropolis. A similar business model can be adapted and customized as per the regional parameters in
order to become the nation’s leading cellular service provider. 2. Market Development:
India is still an agrarian economy and 70 percent of it’s
population still dwells in rural areas. According to recently conducted surveys, statistics showed that 45% of the overall telecomm sector growth is to come from the rural sector. A
major chunk of vodafone’s revenue is still generated from tier 1 and tier 2 cities. This leads us to conclude that Vodafone needs to place further focus on rural penetration so as to
create economies of scale as well as the top line growth of
revenues. Development of infrastructure in rural areas is a
bottleneck due to the cost factor associated with it. Project MOST (Mobile Operators' Shared Towers) by COAI was initiated in order to reduce these heavy costs by sharing infrastructure between the service providers, hence resulting in better

coverage and quality. Optimal rural penetration can be
achieved by taking into account the economic environment
prevailing in the rural sector. This would encompass the socio economic factors and would hence provide a more regional
focus to the adversting and promotional strategies in order to...
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